You never hear people ask: “What do the Conservatives stand for?” You may not agree with them but there are certain signature policies that define the Harper Tories. Jim Flaherty, the Finance Minister, talked about one of them Thursday — corporate tax cuts. He was asked whether he was discouraged by signs that provincial governments have lost faith in the mission to reduce the combined national corporate rate to 25%.

He said the federal government has done its part by lowering the federal component to 15%, down from 28% in 2000. “We did this through a recession and persisted because we believe lower taxes create investment and jobs. I continue to encourage our provincial partners to follow our lead,” he said.

But it seems that appeal will fall on deaf ears. British Columbia announced this week that it may raise its corporate rate from 10% to 11% and Ontario has signalled it may not complete its planned rate reduction from 14% to 10% (it is currently 11.5%). This in a week when President Barack Obama said he wants to reduce the U.S. corporate rate from 35% to 28%.

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The news from the provinces will be greeted rapturously by NDP leadership candidates like Brian Topp, who wants to increase the federal rate to 22% and spend the $11-billion proceeds on other pet projects.

His cheerleaders at the Canadian Labour Congress no doubt joined him in welcoming the provincial wavering. The CLC has been at the forefront of those arguing that the proceeds of corporate income tax cuts have gone straight into the pockets of “Canada’s highly paid CEOs and other members of the top 1%” because companies have been “hoarding” cash, rather than investing it.

“Government revenues have taken a big hit without the expected upside of a stronger, more productive economy,” the CLC’s chief economist, Andrew Jackson, concluded in a recent report.

In fact, the federal government’s corporate income tax revenues have been on a steady incline since the recession, averaging around 1.9% of GDP. At the same time, the Bank of Canada’s latest business outlook survey suggests 40% of businesses plan to increase investment this year, with only 19% saying they plan less investment. More than half said they see increased employment.

The recession saw business investment tumble by nearly 20% but it has recovered steadily since then, with manufacturing investment intentions rising 15% in 2011, the largest advance since 1995. Canadian manufacturing is on a dual track – one of which is “expanding” (petroleum, metals, machinery, plastics) and the other of which is “contracting” (textiles, computers, autos, paper and printing). Investment in the latter group levelled off in 1995 and no amount of corporate tax cuts are likely to spur injections of cash.

But investment in the expanding sectors – those that have seen sales rise in recent years – is now above pre-recession levels and has undoubtedly been aided by tax relief.

It’s fair to say companies have been sitting on cash, waiting for demand to recover. And it’s even reasonable to suggest investment levels have been disappointing in some cases. Ontario Finance Minister Dwight Duncan expressed his frustration publicly when he said business “has got to step up to the table and invest here in Ontario,” after investment in machinery and equipment in the province slipped in the third quarter of last year.

But the weight of evidence is with the Conservatives (and Messrs. McGuinty and Obama), rather than their critics. Corporate tax reductions increase after-tax profits. When after-tax profits rise, there is more money available for wages, machinery to improve competitiveness and dividends – which can, in turn, be taxed.

The strength of the dollar and the price of oil likely have as much, if not more, impact on investment decisions as corporate tax rates. But the Conservatives have had some success in marketing Canada as a low-tax locale. We currently sit in the middle of the OECD pack – double Ireland’s rate but 13 points lower than Japan.

Holding pat on rates for a year or two to help get budgets back into balance need not put that standing at risk. But to start hiking rates would have the same effect on Canada’s reputation as a reformed alcoholic being spotted hoisting beers in a bar.

In the wake of a Grammy Awards ceremony that disappointed many, from Kanye West to the masses on Twitter lamenting the state of pop music, a historical perspective is key. Few are better poised to offer one than Andy Kim.